SYDNEY, Jan 17, 2026, 02:51 AEDT
Commonwealth Bank of Australia (CBA) has increased fixed home loan rates by up to 0.70 percentage points, with its lowest owner-occupier fixed rate now at 5.79% for a two-year term. Macquarie Bank followed suit, hiking fixed rates across all terms. Meanwhile, National Australia Bank (NAB) offers the lowest headline fixed rate among the big four banks at 5.39% for both one- and two-year terms, according to Canstar comparisons. 1
This repricing comes mere weeks ahead of the Reserve Bank of Australia’s first monetary policy meeting of the year, with borrowers and markets eyeing any changes to the “cash rate”—the key benchmark that influences banks’ funding costs and variable mortgage rates. The RBA’s policy board is set to convene on Feb. 2–3. 2
CommBank’s head of Australian economics, Belinda Allen, said strong December spending “supports our expectation” of a rate hike in February, but flagged the consumer price index report on Jan. 28 as “critical” for timing. Your Mortgage, referencing APRA banking data, noted Macquarie’s home loan book expanded around 2.3% in November. 3
In Australia, fixed-rate mortgages hold the interest rate steady for a set period, typically between one and five years. Variable rates, on the other hand, shift when lenders respond to changes in official rates, but banks also tweak pricing according to their funding costs and competitive pressures.
CBA’s biggest move was a 70 basis point jump in its three-year fixed mortgage rate, pushing it to 6.04% — remember, one basis point equals 0.01 percentage point. Its one-year rate climbed to 5.94%, the report showed. According to Canstar’s analysis cited there, just a 0.25-point increase would tack on roughly A$90 per month for someone with a A$600,000 loan. 4
Macquarie has raised fixed loan rates by 0.25 percentage points across all terms, pushing its lowest fixed rate for one year to 5.59%, following an earlier hike on Dec. 5, 9News reported. The RBA’s cash rate has remained steady at 3.6% for several months, according to the broadcaster. 5
Canstar data insights director Sally Tindall noted that “the fixed rate tide is on the way out,” as lenders scale back sub-5% fixed offers. She mentioned there’s still a “smattering” of deals starting with a four, but it’s uncertain “how long they’ll hold on.” 6
While most mortgage holders stick with variable rates, fixed loans still play a key role. They influence the options new buyers face and often serve as the initial choice for borrowers looking to lock in steadier payments.
That said, fixed-rate shifts often jump ahead of the numbers. A weaker inflation report or an unexpected RBA pause might slow the pace of rate increases—if only temporarily.
The CPI release on Jan. 28 and the RBA decision on Feb. 3 are the next key local markers. These dates now hold extra significance for households coming off earlier fixed deals.
